As you can see from the chart below, price is gradually climbing but is also consolidating while traders are waiting for breakout catalysts. While there are no top-tier reports lined up from the United Kingdom and New Zealand this week, I’m thinking that the path of least resistance is to the upside, thanks to diverging monetary policy biases between the BOE and RBNZ. Data releases from both economies last week do support these biases anyway.

GBP/NZD 1-hour Forex Chart

I was able to enter a long position at 2.3000 with a wide stop at 2.2700 and an even larger profit target at 2.5000. I couldn’t really spot a nearby resistance level on the 1-hour and 4-hour charts so I zoomed all the way out to the weekly forex time frame. From here, I saw that the pair is in the process of filling the huge gap it made since 2009!

GBP/NZD Weekly Forex Chart

Of course I’ll be making trade adjustments along the way by trailing my stop or even adding to my position if the bullish momentum gets stronger. Do you think this is a reasonable target or am I being too ambitious? As always, I’d love to get your feedback on my ideas!

Cheers,

Other Popular Articles:

This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.

About Happy Pip

I am HappyPip, lady trader of the Commodity Dollars or "ComDolls!" We will look at price action of the Australian Dollar, New Zealand Dollar, and the Canadian Dollar, as well as their respective economies, and how commodities prices may affect their long term movements. Put on a "happy face" and come join me, won't ya! :)

We introduce people to the world of currency trading, and provide educational content to help them learn how to become profitable traders. We're also a community of traders that support each other on our daily trading journey.